J.P. Morgan yesterday that Saudi Arabia will be incorporated into its local currency emerging market debt index, effective 29 January 2027.
The inclusion encompasses Saudi riyal-denominated sovereign sukuk, which will enter the GBI-EM index series. KSA entered the GBI-EM Watchlist in September 2025.
The weighting of these countries will be phased in gradually, with the Kingdom anticipated to represent 2.52%.
This adjustment is part of a more extensive update to the index, which will reduce the “Country Cap”: the maximum allowable weight for any individual country within the diversified index from 10% to 9%.
Several major markets, including China, India, Mexico, Malaysia, and Indonesia will experience a decrease in their respective weights to adhere to the new limit.
J.P. Morgan estimates that approximately eight Saudi sovereign sukuk valued at around $69B could qualify for inclusion under existing eligibility criteria.
Stay Up to Date with the Latest Updates at Finance ME
“We Can’t Stand Still”: Alserkal SMEs Break Even
Saudi Arabia Added to J.P. Morgan EM Bond Index Watchlist
EDGE’s Rodrigo Torres on Risk, Sovereignty and Defence Finance in a Multipolar World
